Economic Buzz: Eurozone PMI Composite Output Index At 49.2 In August

23 Aug 2022 , 03:28 PM

The seasonally adjusted S&P Global Eurozone PMI Composite Output Index dropped to 49.2 in August, from 49.9 in July, according to the flash reading. The index signaled a second successive reduction in business activity across the eurozone following a 16-month period of growth. Although still only slight, the latest decline was sharper than that seen in July. The overall drop in output was again driven by a contraction in the manufacturing sector, where production fell for the third month running and at a solid pace. That said, the service sector barely registered any improvement in activity during August as the rate of expansion slowed for the fourth consecutive month to the softest since the sector returned to growth in April 2021. The overall reduction in business activity in the euro area was mainly centered on the largest national economies. Germany posted the sharpest decline in output since June 2020 as manufacturing production continued to fall markedly and the contraction in services activity accelerated. Activity in France decreased for the first time in a year-and-a-half, reflective of a sharp drop in manufacturing output and softer growth of services activity. Outside of the big-two, output continued to increase, albeit only marginally. Powered by Commodity Insights